Ongoing regulatory pressure has created a challenging business environment for Binance.US’ banking partners.
Binance.US has told its clients that they may not be able to buy cryptocurrencies with USD from June 13th. Thursday’s announcement comes after the Securities and Exchange Commission (SEC) filed a lawsuit against the exchange and its founder, Changpeng Zhao (CZ). ) on monday.
The SEC insists that Binance violated the country’s securities laws. On the other hand, the exchange says the regulator is only filing “undue civil claims” against its business.
the official advertisement It reads in part:
“Today we are suspending US dollar deposits and notifying customers that our banking partners are preparing to pause cash withdrawal channels (in US dollars) as early as June 13, 2023.”
Binance.US will lose access to the US banking system
As it is, the SEC is looking to freeze Binance.US assets. Interestingly, however, the regulator has also considered clients and has asked the court to approve a temporary restraining order. This is to allow the exchange to continue processing withdrawal requests in the meantime.
Despite this, regulatory pressure has created a difficult business environment for Binance.US banking partners. Hence, the reason why the so-called banking partners “indicated their intention to stop the mandatory channels of US dollars”, starting next week.
However, Binance encouraged its clients to take appropriate measures with the US dollar. It also assures them that their money is safe. That is, even if they cannot withdraw their money by the due date, they can still convert it into a stablecoin such as Tether (USDT), and then withdraw it. Then, they can then convert the stablecoin into dollars elsewhere.
The exchange said it had preemptively disabled customers’ ability to buy and deposit US dollars.
Transition in progress?
Binance.US’s preemptive measures to prevent customers from buying and depositing USD may have positioned it as a crypto-only exchange. But that may only continue until her case is cleared up with the SEC.
For now, Binance.US has taken other measures to ensure that its US-focused platform can continue to operate even without banks. To that end, the exchange also announced the de-listing of ten different trading pairs in light of the ongoing lawsuit.
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